Key Takeaways:
- Latam remittances have reached an estimated $174B, although the growth is not following the US-Mexico route.
- Stablecoins have since overturned crypto use in the area and are now mostly used as a way to save money, rather than a form of payment.
- The majority of fintechs focus on the wrong users/corridors and overlook large underserved markets.
Stablecoins are quietly reshaping cross-border payments in Latin America, but most fintech strategies are still misaligned. New insights from Bybit’s CMO Claudia Wang show the real drivers behind a fast-evolving $174 billion market.
— Claudia (@0x_claudia) May 3, 2026
Read More: $315B Stablecoin Market Faces BIS Warning as Dollar Tokens Threaten Finance Stability
LATAM Flows Shift Away From Mexico
Remittances into Latin America reached a record ~$174 billion in 2025. But growth is no longer centered on Mexico.
Mexico experienced the fall of 4.5% to $61.8 billion. Central American nations in the meantime shot up with over decade growths in Guatemala, Honduras and El Salvador.
This shift reflects changing migration patterns. Migrants from Central America are sending money home faster and in larger amounts, often reacting to policy pressure in the U.S.
Most fintechs still focus on the US – Mexico corridor. That’s a mistake. Smaller routes, especially non-U.S. corridors, remain underserved and face less competition.
Stablecoins Are Held, Not Just Sent
Users Want Dollars, Not Transactions
Stablecoins now account for around 40% of all crypto purchases across LATAM, overtaking Bitcoin.
But the key insight is behavioral. Users are not using stablecoins just to transfer money. In some nations such as Argentina, stablecoins control more than 70% of the crypto purchases. This is an indication of high demand for dollar exposure as there is inflation and capital controls.
The Real Remittance User Is Not Crypto-Native
Fintech products often target young, tech-savvy users. That’s not who drives remittances. The typical sender is 40–60 years old, sending $100–$600 monthly to the family. More than 80% of the money is spent on basic needs such as food and shelter.
This demographic prefers featureless features over features. When the process of sending money seems tricky, they will not use the commodity. Mobile-first design, the support of a local language, and rapid confirmation is more significant than advanced crypto tools.
Read More: Visa Adds 5 Blockchains to $7B Stablecoin Network, 50% Surge Fuels Adoption
Costs and Competition Are Shifting Fast
Conventional remittance service providers continue to charge on the order of 5%-6% per transaction. At the same time, market share is shifting.
Other legacy players in the telecommunication market such as Western Union are behind the times, unlike digital platforms. There is also an increase in the number of crypto-native companies, particularly in the areas where conventional services are either too costly or restrictive.
Regulation and Strategy Divide the Region
LATAM is not a single market. Every country possesses its own rules and infrastructure as well as user behavior. Argentina and Colombia are easier to enter. Brazil and Mexico are bigger and more challenging as regulation is more strict.
Another dimension, which was added recently in the U.S. policy, is the 1% tax on the cash remittance. This is driving users towards online and crypto-based remits. Firms able to adjust to these variations and integrate both local payment rails and combination of stablecoin liquidity are in a better position to respond to long-term demand.
